Multi-Pronged Policy Response Needed To Reignite Growth: RBI Deputy Head

Central banks are stakeholders in this effort in view of their mandates of macroeconomic and financial stability, said MD Patra.

Reserve Bank Deputy Governor MD Patra has pitched for a multi-pronged policy response to reignite and sustain productivity and growth at a time when multiple factors which can influence the economy are at work.

The policy response has to be powered by technological capital deepening, accompanied by long-term investment in research and development to nurture a competitive innovation ecosystem, skill development through sustained educational attainments and training, and building up the physical infrastructure, he said.

Emerging Markets and Developing Economies (EMDEs) need to leverage the potential of the services sector to drive productivity growth, he said in his inaugural address at the Sixth Asia KLEMS Conference on Sunday at Lonavala.

Investing in ICT infrastructure, securing reduction in trade costs like those associated with shipping, logistics and regulation and supportive business-enabling reforms could help to engage the private sector in partnering in this endeavour, he said.